The slight widening gap between the rupee rates against the dollar in interbank and open markets has led to a modest surge in gold prices, with investors seeking refuge in the metal traditionally seen as a safe harbor.
The price of 24-carat gold per tola rose by Rs500, and Rs428 per 10 grams, resulting in new prices of Rs233,600 and Rs200,274, respectively, according to data provided by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA).
The interbank market closed with the rupee at 285, while the open market rate ended at 299, an increase from over 300 the previous day, causing concerns about the currency’s stability.
On the international front, gold prices took a slight tumble as optimism grew about a potential agreement to increase the US debt ceiling, diminishing gold’s allure as a safety net. The rate dropped $12 to settle at $1,976 per ounce.
Pakistan’s gold market has seen turbulent times lately due to economic and political instability, rampant inflation, and currency devaluation. These conditions have caused people to view gold as a reliable investment and a buffer.
After reaching a record high of Rs240,000 per tola on May 10 due to the political uncertainty following the arrest of PTI Chairman Imran Khan, the price of the cherished metal saw a decline, aligning with the dip in international rates.
The APSGJA also mentioned that local gold in Pakistan is currently overpriced by Rs4,500 per tola compared to the Dubai bullion market, making the Pakistani gold market pricier than the global market.
Meanwhile, the price of silver fell by Rs50 per tola and Rs42.86 per 10 grams, settling at Rs2,900 and Rs2,486.28, respectively, as per the data from the association.
